After running the online store for about half a year, they were contacted by the former proprietor for the first Kyuss fan website. He recommended MeteorCity do a compilation of unsigned bands that Kyuss fans would enjoy.[3] MeteorCity Records was formed, and the result of the suggestion was the compilation Welcome to MeteorCity,[2] which was released in May of that year.[1] The compilation included both established desert and stoner rock acts, including new bands established by John Garcia of Kyuss (now in Unida), Ed Mundell of Monster Magnet, and Pete Stahl. The album was the first time that the bands Sixty Watt Shaman, Lowrider, The Atomic Bitchwax, Dozer, Goatsnake, Drag Pack, and Los Natas were heard on a record.[1] According to MeteorCity founders,

"When this was happening, there wasn't really a [stoner rock] scene yet, there were just a lot of people around the world who were still sad about the end of Kyuss, as well as the end of Slo Burn, and who listened to stuff like Monster Magnet and Fu Manchu but wanted more. The label took off when we appeared with Welcome To Meteor City, as though the world was waiting for someone to do what we were doing."[3]

Around this time a MeteorCity intern purportedly coined the term desert rock to describe the burgeoning genre, which is still used interchangeably with the more known descriptor "stoner rock". Stoner rock originates from the title of the 1997 Roadrunner Records compilation Burn One Up! Music for Stoners.[1]

After the first compilation was released, that summer the label received a call from customer Henry Vasquez, who had the members of the band Nebula in his store. The bandmembers, which included founding Fu Manchu members Eddie Glass (guitar) and Ruben Romano (drums), had asked to talk with them. The band agreed to release their EP on MeteorCity, and MeteorCity offered to fund the band's recording session with Jack Endino. The result was MeteorCity's second release, the Nebula/Lowrider EP, which also featured tracks by Swedish band Lowrider. In 1999, the label released Unida/Dozer, a joint EP featuring the first non-compilation tracks by Unida and Swedish band Dozer.[3]

In 2007, Shickler and Emmel sold MeteorCity Records to Dan Beland and Melanie Streko as well. Their farewell release was a three disc compilation disc titled ...And Back to Earth Again.[2] MeteorCity continued to release albums by new bands, including full LPs from Black Pyramid, Elder, Snail and Freedom Hawk, among others.[2] In 2010 StonerRock.com was taken offline, and MeteorCity Records became the official label for All That is Heavy.[5] On September 1, 2014 Melanie Streko resigned from All That is Heavy and MeteorCity Records. Three years later, on August 1, 2017, All That is Heavy was sold to Casey and Taylor Kelch of Katy, Texas.